It remains a possibility that any fiscal cliff legislation could include the farm bill. Boehner’s proposal would reportedly generate about $2 trillion in savings over the next decade. The amount is split between new taxes and spending talks.
The offer would generate as much as $460 billion over the next decade by allowing the George W. Bush-era tax cuts to expire on income over $1 million a year. The remaining tax revenue would be generated through a rewrite of the tax code aimed at limiting deductions and other tax breaks. For everyone else – the Bush tax cuts would be extended.
But Boehner wants something in return for the higher tax rates for millionaires. He wants changes to federal health and retirement programs – and is looking for $1 trillion in total savings. The President has offered $600 billion in spending cuts – with $350 billion coming from health programs and none from Social Security. As for the issue of taxes – President Obama has called for the Bush tax cuts to expire for income over $250,000 a year. The Joint Committee on Taxation says the move would raise $830 billion over the next decade.
He is also looking to raise taxes on inherited estates and new limits on tax breaks for the wealthy – to bring total new taxes to $1.6 trillion. White House officials dropped their tax demand to $1.4 trillion last week.